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Military and settlement?





Sub: Military and settlement?
Fri, 01/07/2011 07:13

Is anyone on this forum military (active or reserves) and are currently or have done debt settlement?

I was reading on other sites that settlement could cause a soldier to lose his/her security clearance.

Anyone have experience in this area?



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Unregistered

Sub: #1 simple answerFri, 07/01/2011 - 07:13



Financial irresponsibility could be looked at like you will sell government secrets to straiten out your personal mess. Nuff said.


Unregistered

Sub: #2 I work for a credit counseling agency: CESI Debt Solutions - havMon, 01/31/2011 - 10:18



I work for a credit counseling agency: CESI Debt Solutions - have worked here for 3 years and we do DEBT MANAGEMENT. Debt Management will not effect your Security Clearance, b/c you are paying your creditors every month, just at a lowered interest rate and lower monthly payment. We also offer DEBT SETTLEMENT, via a law firm - this is where you do not pay your creditors until you have saved up enough money in an escrow account to pay back about 25-50% of what you owe. DEBT SETTLEMENT DOES HAVE THE ABILITY TO EFFECT YOUR SECURITY CLEARANCE. If a client is in the military, we cannot offer Settlement to the client. Just google "Debt Management versus Debt Settlement", and you will see. I was actually on a DMP before I worked here - I have paid off all of my debt, and my credit score is now in the 720's. I am getting credit cards and paying them off each month to personally build my own credit, and I don't have issues getting any credit cards. Heck, I could probably even buy a house now!


Unregistered

Sub: #3 Quote:Originally Posted by AnonymousTo everyone confused at how Mon, 03/01/2010 - 06:01



Quote:
Originally Posted by Anonymous
To everyone confused at how debt settlement can hurt your security clearance, it can if you don't show a change and if you are taking responsibility. If you look, what perplexes me most, is the person who says they are confused as to how debt settlement can impact a clearance, PHOENIX, pastes the criteria for a security clearance right below their post with financial responsibility right near the top. Financial irresponsibility is one of the most common reasons that a security clearance is denied, because when individuals become desperate financially, that is one of the most common reasons that they would consider selling secrets, historically. So, I am considering a program, and I do have a security clearance, but I am very cautious and want to have my credit in great shape by the time I go through my next 5 year update for my clearance so that I can demonstrate I have taken responsibility and improved my credit and finances.


The fact that you just told anyone who sees this site that you have a top secret government clearance and that you are having financial problems is more reason to lose your clearance than any credit reconciliation program would ever be.


Unregistered

Sub: #4 Security Clearance and Debt Settlement (financial responsibilitySun, 02/14/2010 - 19:09



To everyone confused at how debt settlement can hurt your security clearance, it can if you don't show a change and if you are taking responsibility. If you look, what perplexes me most, is the person who says they are confused as to how debt settlement can impact a clearance, PHOENIX, pastes the criteria for a security clearance right below their post with financial responsibility right near the top. Financial irresponsibility is one of the most common reasons that a security clearance is denied, because when individuals become desperate financially, that is one of the most common reasons that they would consider selling secrets, historically. So, I am considering a program, and I do have a security clearance, but I am very cautious and want to have my credit in great shape by the time I go through my next 5 year update for my clearance so that I can demonstrate I have taken responsibility and improved my credit and finances.


ericamosley
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Sub: #5 I believe it depends on a lot of things, the type of clearance fMon, 04/06/2009 - 20:30



I believe it depends on a lot of things, the type of clearance first a secret is not as serious as a top secret even with a top secret there are about 12 levels of access. I disagree and I know someone in the AF that did a debt program and completed it and she was fine. I think I got lucking and did mine just before I had this situation pop up and a secret clearance is good for 10 years, top secret is different it is good for 5 years, so when you have one you get up for a review more. And also by the time you finish the program and get somethings together depending on how long you had it it may poss a problem.

A CO can't make you pay the debt and they have no right to talk to your CO about it. Also if now in the Navy they are responding to the letters that have been sent with a response concerning the Fair Creidt Act. These credit card companies are snakes and are abusing people right now. I wouldn't be surprised if the CO was in a program or ask you for some contact info. I had my interest rates increased to 55% for no reason just that the jistory of my account. Mind you I paid on time all the time and I paid more than the minimum on this account I had paid it off twice and when i charege 375 on it they pu interest at 55% my rate was 14.99. These are different times and I believe that people understand. To hell with them and I think that everyone is a little bit sick of them,


tmftwiz
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Sub: #6 I am not in the military but have several friends who are. Two Tue, 12/16/2008 - 15:36



I am not in the military but have several friends who are. Two of them have their Secret Clearance with the Air Force. From the information I gathered, the answer to your question vaires by branch and rank within the armed forces. I was told that the best thing for someone in the military to do is to speak with their CO about the situation, and ask specifically what effect being behind on your credit card bills would have on your career. In speaking with various armed forces personell, their responses have ranged from "oh it wouldn't matter at all" to "I'd get discharged from the military", and it never had anything to do with whether or not they had a clearance. According to one guy I spoke with in the Air Force, there was even the possibility of demotion.

This has been addressed, but I'll reiterate: If you go behind on your bills, someone above you in the military will more than likely find out eventually. Yes it is a private matter but seriously...its the military.

In summary: ask your CO what effect being "seriously delinquent" on your credit cards would have on your career with the military, if any.

@ sdchargers: You said that when you apply for a security clearance, your credit is not checked. Both of my friends that have their Secret Clearance with the Air Force had credit checks done, so I think this may be something that varies by branch in some cases. Also, when I was being interviewed for their background checks (I got interviewed on both :)), I did notice that the people doing the investigation weren't actually part of the military...maybe it varies by which company or group is conducting the background check process as well? If you have any insight on this please share.

And on a side-note: I have the utmost respect for people in the armed forces. If I were president, you would get $100 of debt discharged for every day you are deployed/active.


Unregistered

Sub: #7 debtSun, 12/14/2008 - 21:04



I'm currently active duty military and have been on a debt settlement program for 5 months now. I told my commanding officer about it, just as a heads up. As far as he is concerned it is my perogative and does not concern him. He nor the military can make me pay any debts unless they are military affiliated such as the military STAR card. My wages cannot be garnished nor can my security clearance be hindered in any way. There are many military families in debt and many enrolled in programs such as freedom debt relief. If the military were to reprimand all of us who are having difficulty there would be no one left to go to war. With divorce rates in the military sky-rocketed and the economy the way it is I would expect many more people will be looking for alternative solutions. thanks


Sub: #8 debtMon, 12/08/2008 - 02:31



I'm not saying that I'm TOTALLY right and everyone else is wrong,.......I'm jusy saying I've never heard of anything like that. Security Clearances are based upon your Criminal Background, warrants, not paying Child Support, Alias, etc. As I said, in the above posts, I know people that were just deployed and they had filed BK's. If someone has found OTHER information, please..inform me. Might be something 'there' that I just don't know. Thanks.


phoenix
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Sub: #9 I have also found an information which says that Bankruptcy ChapSun, 12/07/2008 - 23:57



I have also found an information which says that Bankruptcy Chapter 13 can affect your security clearance credential. Please go through the link given below: -
debt settlement or Chapter 13 Bankruptcy?

I'm quite confused. Can someone help me out? In fact, at this juncture I feel that Sdcharger's point is quite strong. But at the same time I feel that it doesn't hurt to consult a lawyer.


phoenix
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Sub: #10 I'm a bit perplexed after reading the above discussion. I, sort Sun, 12/07/2008 - 23:40



I'm a bit perplexed after reading the above discussion. I, sort of, agree with Sdchargers. Why should a credit problem pose a threat to security clearance?

I have googled and found the following information: -



This above information forces me to grope in the dark and wonder, how come debt settlement affect one's security clearance?


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